Housing - Deep Subsidy
Housing that has deep subsidy is generally housing where eligible households must only pay a specific percentage of their household income toward rent and utilities. The subsidy pays the difference, up to an established payment limit. The U.S. Department of Housing & Urban Development typically considers housing “affordable” when it costs no more than thirty percent (30%) of a household’s monthly income. Certain types of income or expenses may be deducted or excluded from monthly income: these are adjustments to income. Therefore, subsidies are often set so that households pay no more than 30% of their monthly adjusted income or ten percent (10%) of their monthly gross income, whichever is higher. Though a household’s income may fluctuate, the percentage of income they pay toward housing remains the same. The subsidy may therefore also fluctuate, and if income decreases significantly, the subsidy may become very large. That is why rent structures where households pay a percentage of their household income toward rent and utilities are known as “deep subsidies.”
To search for this housing, use the Find Housing link, then select Housing - Deep Subsidy and the locality or jurisdiction in which you are looking.
These subsidies include:
o Disability Housing with Deep Subsidies
o Senior Housing with Deep Subsidies
o Public Housing